Division II - Collective Agreements — Arbitration provision

Where a collective agreement does not contain the provision required by subsection (1) the agreement shall be considered to contain the following provision:

where a difference arises between the parties to or persons bound by this agreement or on whose behalf it has been entered into and that difference arises out of the interpretation, application, administration or alleged violation of this agreement or out of a question as to whether a matter is arbitrable, 1 of the parties may, after exhausting a grievance procedure established by this agreement, notify the other party in writing of its desire to submit the difference or allegation to arbitration and the notice shall contain the name of the person appointed to be arbitrator by the party giving the notice;

the party to whom the notice is given shall within 5 days after receiving the notice name the person whom it appoints to be arbitrator and advise the party who gave the notice of the name of its appointee;

2 arbitrators named in accordance with this provision shall within 5 days after the appointment of the 2nd of them name a 3rd arbitrator and he or she shall be the chairperson of the arbitration board;

where the party to whom notice is given fails to name an arbitrator within the period of 5 days after receiving the notice or where the 2 arbitrators named by the parties fail to agree upon the naming of the chairperson within 5 days after the naming of the 2nd arbitrator, the minister shall, on the request of either party, name an arbitrator on behalf of the party who failed to name an arbitrator, or shall name the chairperson and, where the case so requires, the minister shall name the 2nd arbitrator and the chairperson;

the arbitration board named under this provision shall hear relevant evidence and argument relating to the difference or allegation by the parties or counsel on behalf of either or both of them and make a decision on the difference or allegation and the decision is final and binding upon the parties and upon a person on whose behalf this agreement was made;

the decision of the majority of the members of an arbitration board named under this provision shall be the decision of that board and where there is no majority decision the decision of the chairperson shall be the decision of the board;

each party who is required to name a member of the arbitration board shall pay the remuneration and expenses of that member and the parties shall pay equally the remuneration and expenses of the chairperson.

Where, in the opinion of the board, a part of the provisions for final settlement in a collective agreement, including the provisions for the method of appointment of an arbitrator or arbitration board, is inadequate the board may, on the written request of a party to the agreement, rule on the adequacy of those provisions, and where the board rules that those provisions are inadequate for the purposes of subsection (1), the provisions for final settlement set out in subsection (2) apply and shall be substituted for the provisions for final settlement contained in the agreement.

A party to and a person bound by a collective agreement and a person on whose behalf the agreement was entered into shall comply with the provision for final settlement contained in the agreement or in subsection (2) and shall comply with a decision of an arbitrator or board of arbitrators appointed in accordance with that provision and do or abstain from doing anything required by that decision.